Want a mortgage...Advise needed!!

mystery07

Hi guys,

Im a 22yr old single Mother, work part time & studying towards a part time degree. More & more so, considering our future now, as i start to think about 5 & 10 year plans....

High on my list of priorities, is to get a mortgage (I live in a privately rented house currently) mainly, as a mark of security....

As, I see it, im not in a positon to go out & get a mortgage tommorrow, but I dont feel like I want to wait until my degree has finished....I will be free of debt, this year & next year & year after, I intend on saving at least £2/3 thousand per year...Which would give me about 6K, would this be a large enough deposit? In 1/2 years, I will probably be still on fairly low paid job that I am now...however, I manage £475 Rent per month now, so see no reason why i couldnt afford a mortgage?!

Is this do-able? Do i need to save more? Will my low paid job get in the way? Is there anything I can do to make it easier? Or am i simply being unrealistic, wanting a mortgage, at my age?

Can anyone offer some kind of advise, so i can start to plan?? Anything, would be gratefully recieved...........

Also, 1 other question...What do people think will happen to house prices in the next two years, go up/down, stay the same?!

XxX

*********SORRY, JUST REALISED I POSTED THIS IN THE WRONG PLACE - DIDNT MEAN TO, WILL RE-POST, PLEASE DELETE!********

Mr_helpful

If this is something you really want Im sure you will find a way. One thing to remember is the added risk of being a single parent. If you are off work because say your child is ill it is likely your rent can be paid by housing benefits, however there is no state help for 9 mths with a mortgage by which time you may be repossessed.
If you are determined enough then you will find a way of getting what you want

Rafter

Sounds like the deposit won't be the issue, the problem is the amount anyone will lend you on a small income and the cost of housing, although from your location you are not in the most expensive area of the country.

It may be that buying with someone else may be your only option or you just have to be patient.

Go have a look at some mortgage calculators on various company websites to see how much you can borrow and then what that might buy you.

It maybe you are better off in a nice rented place for now.

Prediciting house price movements is a dangerous science and notoriously inacurate.

My view, the growth of the last few years is unsustainable, because people like you can't afford to buy. Buy to let investors who borrowed when interest rates were lower are going to get a nasty shock when they remortgage and find the rent doesn't cover the mortgage payments.

So probably growth will slow or maybe go backwards. But equally the oil price could fall, someone discovers a cheap source of new energy and interest rates come down.

In the short term there is a shortage of property in the UK and lots of people want to move here. If anything changes that, prices could fall dramatically, which is why you should never buy property as a short term investment.

R.

helping_hubby

I don't know how much houses cost where you are, so I don't know if £6k is enough for a deposit. But you also need to think of saving money for stamp duty, solicitors fees, removal costs, will you need to buy any furniture/white goods. If you're renting now, you need to take into account what your rent includes, as if your rent includes bills, then you may have extra outgoings such as council tax, gas, electric, water, buildings insurance. You may need to factor in life insurance.

Also if things break in the house you will be resposible, where as when your renting its the landlords problem.

So lots to think about and maybe more to save up for?

It's annoying, but you are still relatively young...I'm 27 and husband is 30 and we're in the process of buying our first home. I've been itching to buy since I left uni.

mystery07

Thanks guys........

Will probably, think a little more longer term, as I didnt think about buildings insurance/life insurance........& think, I will prob need more then 6K free.....

Thanks for all your words......really grateful

XxX